Lalu does a u-turn, goes for surcharge on certain goods

To be levied between July 1 and September 30 this year, this special supplementary charge will be applicable on base freight rates.

A circular issued on Wednesday, a copy of which is with The Indian Express, said the Railway Ministry, under its “Dynamic Pricing Policy”, has decided to levy a five per cent special supplementary charge on commodities falling under the Coal and Coke Group (Class 140) and a seven per cent charge on all kinds of “ores and minerals”, “all POL products”, and on “Commodities in Class 120 and below”.

Simply put, from July 1 onwards, transporting commodities like foodgrains, flour, pulses, sugar, soap, salt, machinery and machine tools, leather, rubber and plastic through Indian Railways will be expensive by seven per cent since all these fall either in Class 120 or below.

Even as steel and cement have been exempted from the list of commodities on which the levy is to be imposed, the move is set to escalate the prices of key commodities like foodgrains and machinery. Railway Ministry officials were not available for comment.